How do you measure the value that your brand is adding to your business? Experts suggest several metrics to weigh the value of a brand, such as the difference in the price of branded label products versus that of a non-branded label product.
You may be tempted to measure everything, but instead focus on these four factors that matter most.
1. Consumer Views and Opinions of Your Company
One of the most practical metrics to gauge the real worth of your brand is what your customers are saying about it. Some 84% of consumers will somewhat or totally trust opinions and recommendations from friends, colleagues, and family about a brand's products and services, according to a Nielsen report.
The following can help you measure how your brand adds value to your business when your customers are forming opinions about your brand:
- Positive customer reviews. Some 90% of respondents who read positive customer reviews on the Internet said their buying decision was influenced by what they read, according to a survey by Dimensional Research. By measuring the outcome of customers leaving a positive review about your business on the Internet, you can get the real value the brand contributes to your business.
- Customer recommendation. Word-of-mouth marketing is one of the most powerful measures of value your brand can get. When customers recommend your business to others, they demonstrate a strong faith in the brand.
- Customer loyalty. Customer loyalty is a strong signal of how valuable your brand is. For example, when customers were asked about the impact of the Volkswagen emission scandal, many customers reported that they didn't feel differently about their car but felt betrayed by the brand. Moreover, according to a White House Office of Consumer Affairs, the worth of a loyal customer is 10X the value of their first purchase.
2. The Value of Your Business Name
The majority of B2C consumers are willing to pay a premium for a well-known brand. Though this is a cognitive interaction between the brand and a consumer, many B2C customers still claim they're only paying the premium because of the quality of the product.
Reports reiterate that marketers erroneously associate the product quality, styling, and service reliability to the value of a brand. The real value comes from the ability of the brand to charge more using its name.
Take the first step (it's free).
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